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10 December, 02:32

Each of the following is a benefit of issuing stock to grow a business except:

A) Access to more funds than she could get from her own savings.

B) Access to money that she does not have to repay, unlike a loan.

C) The possibility of rapid growth.

D) Giving up shares of ownership.

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Answers (1)
  1. 10 December, 04:50
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    D. giving up shares of ownership

    Explanation:

    Selling stocks is mainly done by companies in order to gather enough capital injection to expand their operation. Giving up ownership to others actually give them a lot of disadvantages. Such as:

    - They have to distribute their profit to the stockholders according to how much ownership they own.

    - The action of the management team will be limited since stockholders who have large enough ownership tend to be able to influence the company's decision making.

    - Investors of high ownership can also influence the selection of the Chief Executives in the company. The current holder of these positions could easily be replaced f they do not perform well.
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